Amigo Resources PLC has signed a memorandum of understanding (MOU) with Tanzania’s State Mining Corporation (STAMICO) to assess the potential recovery and beneficiation of graphite from historical tailings, dumps and stockpiles in the country.
The agreement gives the London-listed Africa-focused mining company an opportunity to investigate whether material previously regarded as waste can be converted into a commercially saleable mineral product.
Under the MOU, Amigo will lead and finance a technical due diligence programme designed to establish the quality, quantity and processing potential of the graphite-bearing material.
The programme is expected to include sampling, metallurgical test work and independent laboratory analysis before the companies determine whether the project can advance to a more formal development stage.
The agreement also provides Amigo with exclusivity during discussions with third parties as the two organisations work towards potential definitive agreements.
STAMICO will support the initiative by coordinating with relevant government authorities, local stakeholders and artisanal miners, as well as facilitating access to project areas and available information.
The proposed approach reflects a growing focus within Tanzania’s mining sector on increasing mineral recovery and adding value to resources already generated by mining operations.
Rather than relying solely on conventional extraction of fresh ore, tailings recovery can potentially extract residual minerals from previously processed material while reducing the volume of legacy mining waste.
Craig Ransley, executive chair of Amigo Resources, said the agreement provides an opportunity to investigate whether unused graphite-bearing materials can be transformed into valuable resources and potentially create new income opportunities for eligible local miners and material owners.
STAMICO managing director Dr Venance Mwasse described the agreement as an important step towards broader cooperation between the state mining corporation and Amigo in Tanzania.
The initiative comes as graphite continues to attract strategic interest because of its role in energy storage, electric vehicles and other advanced technologies.
Tanzania has been seeking to strengthen its position in the global graphite supply chain, with recent agreements and projects involving STAMICO and private-sector companies focused on developing the country’s graphite resources and increasing local participation in the sector.
For Amigo, the MOU also expands its focus in Tanzania beyond conventional exploration and mining. The company has previously secured processing licences for its planned modular mineral processing hubs at Kabete Mines and Mojimoto, with the facilities intended to support metallurgical evaluation, ore aggregation, gravity recovery and integration of small-scale and artisanal mining feedstock.
However, the graphite tailings initiative remains at an evaluation stage, and the MOU does not guarantee that a commercial project will be developed.
The outcome will depend on the results of sampling and metallurgical testing, the characteristics of the tailings, processing economics and the ability of the parties to agree binding terms.
If the technical work demonstrates sufficient recoverable graphite and favourable processing economics, the project could offer a route to turning historical mining residues into an additional mineral resource while supporting Tanzania’s broader ambitions for resource efficiency, local beneficiation and greater value creation from its mineral wealth.
